201: Tokemak Terminology


In order to maintain system stability, Tokemak operates on weekly "cycles".


Introduction to Cycles

201 Level Reactors Course

Tokemak operates on weekly Cycles that dictate rewards and liquidity deployment. This is designed to stabilize the system and reduces gas costs & impermanent loss.

During a Cycle, Pilots vote to direct liquidity to their preferred venue. At the end of the Cycle, votes are committed, and during the Cycle Rollover liquidity is redeployed based upon the updated votes.

Pilots are able to redistribute votes gaslessly throughout a Cycle to seek the highest yield, and the APR is locked in once a new Cycle begins.

Liquidity Provider and Directors earn TOKE rewards proportional to the value of assets they deposit into Reactors and the performance of the deployment strategy.

Rewards begin accruing at the beginning of a Cycle and can be claimed after the Cycle rollover. If a withdrawal request is made, rewards continue to accrue for the duration of the Cycle, but rewards will no longer accrue for the following Cycles unless assets are redeposited or the withdrawal request is canceled. This is because the assets are no longer being deployed productively to venues and therefore no longer earning yield.

Weekly Cycles1

Liquidity Marketplace